Supply Chain Homework

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Homework 3 Supply Chain.docx

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BUS ADM 370 Introduction to Supply Chain Management Homework 3 (25 points) For all the problems, to receive full scores, you have to show your complete and accurate work. If you only provide the final answers without showing your computations, you will not be assigned a full score (or you will miss the opportunity of receiving partial credit). All homework is to be turned in on time through D2L. Problem 1: Little’s Law (7 points) A computer repair company works five days per week and last week had the following new orders and end of day inventory levels. This company should be assumed to be operating at steady state so Little’s Law can be applied. Monday Tuesday Wednesday Thursday Friday Orders 1592 1681 2088 1754 1630 Ending On Hand (EOH) Units 159 202 178 183 148 a) What is the average arrival of orders per day? (2 points) b) What is the average end of day inventory level? (2 points) c) Using Little’s Law, what is the average amount of time a computer spent at the repair company Monday through Friday last week? (3 points) Problem 2: Supplier Selection (8 points) Your sourcing department has received bids from three suppliers shown below. PERFORMANCE DIMENSION IMPORTANCE Supplier 1 Supplier 2 Supplier 3 On Time Delivery (% on time) Excess Capacity (square feet of excess space) Cost ($/unit) 0.70 92% 95% 98% 0.20 77k sq. ft. 199k sq. ft. 0 sq. ft. 0.10 $5/unit $4/unit $3.50/unit a) Score each supplier‘s bid using the following scale. (3 points) On Time Delivery Range Score
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